If you are on the lookout for some investment ideas, then read on. That's because Bell Potter has been busy picking out its best ideas for February.
Listed below are two more Australian shares that the broker has just named as best buys for the month ahead. Here's what it is saying about them:
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Elders Ltd (ASX: ELD)
The first ASX share that Bell Potter has recommended as a best buy this month is Elders.
It is a leading agribusiness and rural services company providing a diverse range of services to rural and regional Australia. Bell Potter notes that this includes livestock and wool agency and marketing, real estate services, agricultural supplies, financial services, and insurance.
The broker believes that Elders' shares are looking cheap at current prices and feels that the market is undervaluing the recent acquisition of Delta Agribusiness. In addition, it sees scope for potential upside catalysts and a strong dividend yield for income investors.
Commenting on its bullish view of the stock, Bell Potter said:
We see value in ELD, particularly with the market appearing to undervalue the pending Delta acquisition. The base business is performing well with multiple growth drivers including recovery from drought conditions, system modernisations, and backward integration benefits. We are attracted to ELD's valuation, which is relatively cheap at 12x 12MF P/E, along with these potential upside catalysts and a strong dividend yield.
GemLife Communities (ASX: GLF)
Bell Potter has added this over 50s lifestyle communities developer to its best ideas list this month.
It believes the company is well-placed to benefit from Australia's ageing population and expanding retirement living sector. In fact, Bell Potter estimates that GemLife could deliver a three-year earnings per share compound annual growth rate of 15%.
Commenting on the company, the broker said:
We add GemLife Communities (GLF) to the Small Cap Panel as a high-quality exposure to Australia's ageing population and expanding retirement living sector. The business benefits from an experienced, family led management team with strong alignment through ~43% ownership, supporting long term strategic execution.
With a strong development pipeline and settlements expected to ramp, we forecast a +15% 3 year EPS CAGR, and see the CY25 result as the next major catalyst. The stock looks attractive trading at ~15x FY27 earnings and we anticipate a re-rate as recurring income becomes a bigger contributor of earnings and the market better recognises the resilience and scalability of the model.
